Belgian media first reported rough estimates of the changes on Tuesday, ahead of the government's presentation of the 2022 budget. Taxes in Belgium: a complete guide for expats | Expatica For this reason the Special Tax Inspectorate is authorized to check the tax situation of any person liable to tax as regards any tax and duty, whose assessment, control or recovery are ensured by the State. The Belgian Government has announced some significant changes to the existing special tax regime for foreign executives. The current regime is based on an administrative tolerance that dates back to 1983. Expatriates working in Belgium temporarily may be able to apply for a special taxation regime and only pay Belgian income tax on their income in Belgium (rather than their worldwide income), even if they're classified as a Belgian resident. Tasks. It should be noted that - contrary to the current regime - the impatriate's nationality has no impact on the possibility to benefit from the new regime, meaning that a Belgian national who would fulfill the non-taxation and distance conditions described above could in principle possibly benefit from the special tax regime. Do I have to fulfill some "paperwork" to benefit from this special tax regime? BJA - News - New special tax regime for expatriates proposed 2 The taxable remuneration of an expatriate eligible to benefit from the special tax regime is reduced by deducting so-called tax-free allowances, up to a limit of EUR 11,250/EUR 29,750. Income tax in Belgium Once granted the special tax regime will result in a significant […] Please note that this new regime still must be submitted to the Belgian Parliament who can still make adjustments to the changes mentioned below. Special tax regime for impatriates and impatriate ... PDF Global Employer Services Key changes to tax regime for ... Belgium | expatriates special tax regime: tax-free rent ... The expat will be treated for Belgian tax purposes as a non-resident, liable to Belgian individual income tax on his or her Belgian source income only. As a Belgian tax resident, the beneficiary will be obliged to declare all worldwide income in Belgium. BJA Legal & Tax Committee News. As a reminder, Belgium has a special tax regime for foreign executives and specialists, temporarily working in Belgium. As part of the federal budget agreement, the Belgian government announced a new regime to replace the existing special tax regime for expatriates as from 2022. Moreover, the current benefits (i.e. Expatriate taxation in Belgium: Expat special tax status memo In order to benefit from this special regime, a request must be submitted by both the employer and employee within 6 months following . Under this special tax regime, expatriates who meet certain conditions, can benefit from a reduction of Belgian income tax and social security contributions. The tax due (15%) must be withheld at source and paid directly to the Belgian tax authorities within 15 days of the payment (article 267 of the BITC and article 85 RD / BITC 1992). Following the budgetary agreement of last October, the government wishes to modify, by the end of the year, the special tax regime for foreign executives and researchers. Special tax regime for foreign executives: new regime from ... Broadly, under the special expatriate regime: • The employee is considered a non-resident, meaning that only Belgian-source income is taxable in Belgium; In general, the intention is to align the Belgian special regime with the Dutch 30%-rule. Residents of Belgium pay personal income tax on their total earnings from all worldwide sources on a sliding scale. Special tax regime for impatriates and impatriate ... You can find out more in our guide to filing your taxes in Belgium. In this webcast, we will discuss all details, background and impact of the new tax positions on the Special Tax Regime for Foreign Expatriates. PDF International assignees Working in Belgium Tax equalisation is the difference between the Belgian taxes on the corrected base salary in the home country minus travel exclusion, and the foreign taxes on the base salary which the expatriate should have paid in his home country. Belgium | expatriates special tax regime: tax-free rent allowance Published on 9th Oct 2017 If the expatriate can produce proof of such a specific expense, the part of the allowance granted to rent a larger home (in order to host such activities) would be tax free - in addition to the allowance granted under the expatriates special tax regime . Up to €13,340. 08.08.1983). The new rules will apply as of 1 January 2022. Belgium New special tax regime for inbound taxpayers and inbound researchers As part of the federal budget agreement, the Belgian government announced a new regime to replace the existing special tax regime for expatriates as from 2022. As announced a few weeks ago, as part of the 2022 Federal budget measures, the Belgian government has recently agreed on the principles of a new special tax regime for inbound taxpayers and inbound researchers. Special tax regime for foreign executives: new regime from 1 January 2022 . Belgian personal taxes are very high and this deters some employees and companies from residing there. GENERAL FRAMEWORK: The most significant change is the abolition of the fiction of Belgian tax non-residence. Which sectors can benefit from the special tax regime? By virtue of the expatriates special tax regime, a non-taxable allowance can be granted. Foreign employees working for employers that are part of international groups can benefit from a favourable tax regime within Belgium (administrative Circular 8/8/83). Under this special tax regime, expatriates who meet certain conditions, can benefit from a reduction of Belgian income tax and social security contributions. In general, the intention is to align the Belgian special regime with the Dutch 30%-rule. Belgium is seeking to replace its complicated system of expat tax benefits with a new regime that could bring in an additional €24.5 million annually. Further to a parliamentary question and the subsequent answer from the Belgian Minister of Finance, certain temporary housing costs are scrutinized and, even more importantly, the tax reporting . Belgian special tax regime for foreign executives and specialists: some changes 11/02/2021. It should be noted that - contrary to the current regime - the impatriate's nationality has no impact on the possibility to benefit from the new regime, meaning that a Belgian national who would fulfill the non-taxation and distance conditions described above could in principle possibly benefit from the special tax regime. As a Belgian tax resident, the beneficiary will be obliged to declare all worldwide income in Belgium. Belgium has a long tradition of applying a special tax regime to foreign executives and researchers, who are assigned to Belgium to work for a Belgian entity for an international company. . The Belgian Government has announced some significant changes to the existing special tax regime for foreign executives. 40%. Belgium has an attractive special tax regime for foreign executives and specialists, temporarily employed in Belgium, as set out in the Tax letter of August 8, 1983. Belgium has for many years offered an attractive special tax regime for foreign executives and specialists temporarily employed in Belgium. Belgian special tax regime for foreign executives and specialists: some changes 11/02/2021. Please note that this new regime still must be submitted to the Belgian Parliament who can still make adjustments to the changes mentioned below. The Belgian Government has announced a revision of the current Belgian Special Tax Regime for Foreign Executives in its recently published budgetary measures. Legislation to implement the new regime is expected to be included in legislation to be voted on by parliament at the end of 2021. Belgium has an attractive special expatriate tax regime for foreign nationals working temporarily in Belgium, offering significant benefits and decreasing the cost of employing individuals in Belgium. The years under the current regime will be deducted from the 5 (or 8 years) period that the employee can . Under the current special tax regime, the executive's remuneration must be divided into the part corresponding to work performed in Belgium (which is taxable) and the part corresponding to remuneration for professional activities performed abroad (which is ultimately not taxable in Belgium). New special tax regime for inbound taxpayers and inbound researchers. GENERAL FRAMEWORK: The most significant change is the abolition of the fiction of Belgian tax non-residence. The new rules will apply as of 1 January 2022.. the tax free nature of certain allowances and the so called . Important amendments of the special tax regime for expatriates in Belgium. it will still be . Such allowance is generally computed on the basis of a "Technical Note" established by the Belgian tax authorities, which includes housing costs, living costs and a tax equalisation. Belgium has an attractive special tax regime for foreign executives and specialists, temporarily employed in Belgium, as set out in the Tax letter of August 8, 1983. Key changes to tax regime for expats in Belgium. A special tax regime is available to certain foreign executives and specialists working temporarily in Belgium. under the belgian expatriate special income tax regime, some so-called expatriate allowances (such as tax equalization, cost-of-living differential, housing differential, and home leave allowance) are treated as a reimbursement of extra expenses that are properly borne by the employer, rather than by the employee and are, therefore, not taxable … Under this regime, executives are considered as non-residents for Belgian tax purposes (see below paragraphs 27 to 32). In application of international tax treaties, certain foreign source income will be exempt from tax in Belgium, but subject to progressivity, i.e. In application of international tax treaties, certain foreign source income will be exempt from tax in Belgium, but subject to progressivity, i.e. €13,341-€23,720. The expat will be treated for Belgian tax purposes as a non-resident, liable to Belgian individual income tax on his or her Belgian source income only. EFFECTIVE DATE - 1 January 2022. Belgium has an attractive special tax regime for foreign executives and specialists, temporarily employed in Belgium, as set out in the Tax letter of August 8, 1983. Yes, you do. Belgian tax rate. EFFECTIVE DATE - 1 January 2022. The new regime will apply to employments or assignments starting in Belgium as from 01/01/2022 onwards.. For employees benefitting of the current special tax status for less than 5 years, the possibility is foreseen to opt for the new rules by requesting the application before 30/06/2022. Under this special tax regime, expatriates who meet certain conditions, can benefit from a reduction of Belgian income tax and social security contributions. As part of the federal budget agreement on 12 October 2021, the Belgian government announced a new regime to replace the existing special tax regime for expatriates as from 2022. Legislation to implement the new regime is expected to be included in legislation to be voted on by parliament at the end of 2021. As a consequence of the federal budget agreement, the Belgian government has decided to adapt the existing special tax regime for foreign executives with a new tax regime that will enter into force on January 1, 2022. As part of the federal budget agreement, the Belgian government announced a new regime to replace the existing special tax regime for expatriates as from 2022. Those tax regulations apply only to senior foreign employees who have been transferred to Belgium or have been hired for their positions outside Belgium. 2.4 Social Security. In order to benefit from this special regime, a request must be submitted by both the employer and employee within 6 months following . As a consequence of the federal budget agreement, the Belgian government has decided to adapt the existing special tax regime for foreign executives with a new tax regime that will enter into force on January 1, 2022. The current regime is based on an administrative tolerance that dates back to 1983.The special status has not much changed since. it will still be . Legislation to implement the new regime is expected to be included in A foreign expat assigned temporarily to Belgium within an international group of companies may qualify for a special taxation regime. As announced a few weeks ago, as part of the 2022 Federal budget measures, the Belgian government has recently agreed on the principles of a new special tax regime for inbound taxpayers and inbound researchers. Accordingly the Government has granted a special tax regime to foreign employees with a specialist skill, an academic background or management expertise if they are required by a Belgian corporation. 25%. . As a reminder, Belgium has a special tax regime for foreign executives and specialists, temporarily working in Belgium. Concerning social security rights, there is no special legal regime. The current rules were introduced in 1983 (tax circular letter Ci.RH.624/325.294 dd. A special tax regime is available to certain foreign executives and specialists working temporarily in Belgium. The income concerned is income from the cession or concession of copyright and related rights, as well as legal or compulsory licences, referred to in Book XI of the Belgian Economic Law Code or in similar provisions of foreign law (hereafter "copyright"). Income tax in Belgium. Under this special tax regime, expatriates who meet certain conditions, can benefit from a reduction of Belgian income tax and social security contributions. Belgium has an attractive special tax regime for foreign executives and specialists, temporarily employed in Belgium, as set out in the Tax letter of August 8, 1983. Belgium has an attractive special tax regime for foreign executives and specialists, temporarily employed in Belgium, as set out in the Tax letter of August 8, 1983. This new special tax regime will be included in the year end 'Program Law' and should therefore enter into force on 1 January 2022. Under this special tax regime, expatriates who meet certain conditions, can benefit from a reduction of Belgian income tax and social security contributions. 10 November 2021. A foreign expat assigned temporarily to Belgium within an international group of companies may qualify for a special taxation regime. The special status has not much changed since. The Special Tax Inspectorate's mission is to fight against serious and organized tax evasion. The current tax brackets for 2020's tax return are the following: Belgian income tax bands. Following the budgetary agreement of last October, the government wishes to modify, by the end of the year, the special tax regime for foreign executives and researchers. Under this regime, executives are considered as non-residents for Belgian tax purposes (see below paragraphs 27 to 32). 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